Ahead of the release of this week’s most influential UK data – final second quarter GDP – the Pound experienced minimal fluctuations against both the Euro and US Dollar. The British currency dipped yesterday after BoE policy maker David Miles asserted that the UK’s economy is far from ‘back to normal’. Modest Sterling movement could be triggered by UK CBI reported sales figures.
GBP/EUR is trading in the region of 1.1859 and GBP/USD is trading in the region of 1.5984
With fears that the ongoing US budget talks could result in a federal government shutdown pushing investors towards safe-haven assets the ‘Greenback’ largely retained gains overnight. The US Dollar was also supported by the expectation that today’s new home sales report will show a rebound.
USD/GBP is trading in the region of 0.6254 and USD/EUR is trading in the region of 0.7419
Although the Euro came under pressure as European Central Bank officials stressed the importance of economic policy remaining accommodative, the common currency did strengthen slightly as German consumer confidence eked up by more than expected. With additional Eurozone data lacking today, Euro fluctuations are most likely to be inspired by US news.
EUR/GBP is trading in the region of 0.8432 and EUR/USD is trading in the region of 1.3481
The ‘Aussie’ extended declines during the local session as the Reserve Bank of Australia reiterated the view that a weaker local currency would lend some much needed support to exporters. The commodity-driven Australian Dollar was also knocked by US budget talk concerns.
AUD/GBP is trading in the region of 0.5846, AUD/EUR is trading in the region of 0.6939 and AUD/USD is trading in the region of 0.9354
New Zealand Dollar
During Australasian trading the ‘Kiwi’ softened against all of its most traded currency rivals as a report showed that New Zealand’s trade deficit increased. The New Zealand Dollar slumped to a week low against its US counterpart and lost ground against the Pound and Euro. Declines were exacerbated by the news that New Zealand’s largest dairy exporter reported declining earnings.
NZD/GBP is trading in the region of 0.5151, NZD/EUR is trading in the region of 0.6113 and NZD/USD is trading in the region of 0.8235
After strengthening against its main rivals in response to stronger-than-forecast domestic retail sales, the ‘Loonie’ shed gains as commodity prices dipped. With Canadian economic news lacking today, CAD/USD movement will be driven by US data releases. Any information regarding the US budget talks will also be of interest.
CAD/GBP is trading in the region of 0.6068, CAD/EUR is trading in the region of 0.7197 and CAD/USD is trading in the region of 0.9701
These exchange rates were correct as of 09:20 am